Raymond group co looks to raise PE funds

A group company of textile and apparel major Raymond is in the market to raise funds. According to sources, JK Helene Curtis, is scouting for private equity funding to aid new product development, reports CNBC-TV18's Farah Bookwala. Investment bank Lincoln International has been appointed advisor to the deal.

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JK Helene Curtis manufactures men's grooming products and toiletries under the brand name Park Avenue, Premium and Raymond.
Two independent sources told CNBC-TV18 that JK Helene Curtis intends to raise Rs 100-120 crore by diluting a minority stake of around 10%.
The raised funds will be used primarily for new product development. The process is in early stages and valuations are being worked on. No fund houses have been approached as yet.
Sources say the JK Helene Curtis's proposal is likely to find good interest as fund houses are placing their bets on consumer companies in these turbulent times.
The company is cash rich and has good potential to grow. The company’s brand, Park Avenue, has strong brand equity and its distribution reach is also widespread, say sources.
For instance, in a cluttered Rs 1,500-crore deodorant market, Park Avenue deodorant commands a 7% market share, trailing only Hindustan Unilever's brand, Axe, which has a 10% share. The deodorants are available at more than 2 lakh outlets across India.
Raymond and JK Helene Curtis have cross-holdings in the companies. While Raymond holds around 40% stake in JK Helene Curtis, the latter owns 5.22% of Raymond's equity.
Raymond did not respond to CNBC-TV18'S query. An email to TN Giridhar, CEO and MD, Lincoln International met with the following reply: “As a matter of policy, we do not comment on market speculation”.